Framing in decision-making refers to what tendency?

Framing in decision-making refers to what tendency?

• A. Adjusting choices based on initial percentages
• B. Believing more complex options are better
• C. Making decisions based on positive or negative presentations
• D. Coping with group pressure and cohesion

Answer: (C)

Framing in decision-making is primarily related to the tendency of individuals to make different choices based on how information is presented, specifically whether it is framed in a positive or negative manner. When options are presented with an emphasis on potential gains, people are generally more inclined to take risks. Conversely, if the same options are framed in terms of potential losses, individuals tend to avoid risks. For example, one might feel more favorable about a medical procedure that is described as having a 90% success rate rather than a 10% failure rate, despite the fact that these two statements convey the same information. This demonstrates how the framing effect can significantly influence decision-making processes by manipulating the perception of risk and benefit. Understanding this concept helps clarify how human judgments can be swayed by the context in which information is delivered, emphasizing the importance of presentation and wording in influencing choices and preferences.

Framing in decision-making is primarily related to the tendency of individuals to make different choices based on how information is presented, specifically whether it is framed in a positive or negative manner. When options are presented with an emphasis on potential gains, people are generally more inclined to take risks. Conversely, if the same options are framed in terms of potential losses, individuals tend to avoid risks. For example, one might feel more favorable about a medical procedure that is described as having a 90% success rate rather than a 10% failure rate, despite the fact that these two statements convey the same information. This demonstrates how the framing effect can significantly influence decision-making processes by manipulating the perception of risk and benefit.

Understanding this concept helps clarify how human judgments can be swayed by the context in which information is delivered, emphasizing the importance of presentation and wording in influencing choices and preferences.